Although the overall rate at which the sales of construction-related products is increasing has slowed down, the overall sales figures of such products are still on the rise for the eleventh year running, says a report by the Construction Product Association. The report highlights that over the final four months of 2015 overall sales have risen at a slowed rate than previously, yet manufacturers of such products still remain very positive as to the future of the industry over the course of 2016.
Another positive aspect of the report was that many UK manufacturers have, in fact noticed a notable reduction in costs associated with energy, fuel and even on the exchange rate. However, on the flip side, the costs associated with staffing organisations has been noted to rise somewhat, which, while a very positive figure for employees in the sector, will also be reducing the benefit employers are seeing from the decreased operational costs.
As Rebecca Larkin, Senior Economist for the CPA explains, the figures do highlight positive growth for construction-related products yet, with regard to heavy manufacturing, the figures actually highlighted the lowest balance within a quarter over the past 3 years. She commented that this: “Echoes weakness in overall construction output data for the closing months of last year.” Yet, those operating within the sector do seemingly remain confidence of its success.
One of the key factors to which we can attribute the lessening of energy prices is the oft-reported fall in oil pricing around the world, which has greatly assisted manufacturers in maintaining commercial growth despite relatively shaky economic climate. With regard to the change in employment costs, the rise in pay did not, in fact show up the figured expected by inflation and recognition for performing employers, but the widely-reported skill shortages have acted as a catalyst for employees demanding increased wages which have consequently increased bills.